The Effect of Self-Control Mechanisms on Household Saving Behavior

14 Pages Posted: 12 Mar 2013

See all articles by Jong-Youn Rha

Jong-Youn Rha

Seoul National University - Department of Consumer Studies

Catherine Phillips Montalto

Ohio State University (OSU) - Department of Human Sciences

Sherman D. Hanna

Ohio State University (OSU)

Abstract

The Survey of Consumer Finances was used to assess the explanatory power of self-control mechanisms, controlling for other important constructs from the standard life cycle model of saving. The analysis focused on saving goals, foreseeable expenses, and saving rules as mechanisms of self-control. Household saving behavior was strongly affected by mechanisms that help households practice self-control. Households that had saving rules were much more likely to spend less than income than those that did not have saving rules.

Keywords: behavioral life cycle hypothesis, life cycle hypothesis, saving behavior, self-control, Survey of Consumer Finances

Suggested Citation

Rha, Jong-Youn and Phillips Montalto, Catherine and Hanna, Sherman D., The Effect of Self-Control Mechanisms on Household Saving Behavior. Journal of Financial Counseling and Planning, Vol. 17, No. 2, 2006. Available at SSRN: https://ssrn.com/abstract=2232124

Jong-Youn Rha (Contact Author)

Seoul National University - Department of Consumer Studies ( email )

Gwanak-ku Sillim Dong San 56-1
Seoul
Korea

Catherine Phillips Montalto

Ohio State University (OSU) - Department of Human Sciences ( email )

United States
614-292-4571 (Phone)
614-292-7536 (Fax)

Sherman D. Hanna

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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